A the report, Global luxury brands such as Prada (1913.HK) and LVMH (LVMH.PA) are investing in China again, it's a new investment since a crackdown on conspicuous spending five years ago, but this time they are focusing on smaller, less developed cities even as this world’s second-largest economy slows.
Prada announced will open 7 new stores in Xi’an SKP shopping mall, include 3 for Prada, 2 for Mimu Mimu and 2 for Church’s. There will be a new type of store called “Prada Silver Line”, as the pic above.
The youngsters, who account for around 30 percent of the sector’s China sales, are a demographic less sensitive to wider economic factors, executives said.
“There is the emergence in China of a very strong upper class or upper middle class,” Jean-Paul Agon, Chairman and CEO of cosmetics group L’Oreal (OREP.PA) said on a call with analysts.
“And the difference is that now millennials from this middle and middle upper class are absolutely not hesitant to buy luxury brands.”
Vice President and Digital e-commerce director of Prada group, Chiara Tosato said, “the e-commerce of Prada in China is a important step for digital strategy.”